The cabinet meeting on June 30 discussed the implementation of special policies and mechanisms for urban development along the Nhat Tan-Noi Bai Highway in Hanoi.

Policymakers said the highway would play an important role in the capital city's socio-economic development as it connects downtown Hanoi with Noi Bai International Airport.

A report by the Hanoi People's Committee said the Nhat Tan-Noi Bai urban development project would need an investment of around 33 trillion VND (1.51 billion USD). Infrastructure development alone would cost 22 trillion VND (1 billion USD) and land site clearance 10.8 trillion VND (495.4 million USD), the report said.

With the city unable to raise such funds, the cabinet agreed that special policies and mechanisms were needed if the urban development plan was to be carried out by 2025.

"There is an urgent need to complete special policies and mechanisms needed to speed up infrastructure development of the Nhat Tan-Noi Bai urban area," said Construction Minister Trinh Dinh Dung.

Prime Minister Nguyen Tan Dung said the "special mechanisms must allow the area to be developed based on its economic potential without relying on the State Budget."

At the meeting, the PM also discussed numerous other issues raised by the Government agencies and ministries regarding the Nhat Tan-Noi Bai urban area, including site clearance, social housing projects and the process to select investors and determine land value.

He ordered the Ministry of Planning and Investment to compile policymakers' feedback and recommendations in a report that his office would review later.-VNA